CIRI reveal theme for 2019 Science Symposium

“Understanding Effective Cleaning” has been announced as this year’s theme for the Cleaning Industry Research Institute’s 2019 Science Symposium, which will be held at Miami University in Oxford, Ohio, July 15-17.

Science Advisory Council (SAC) chair, Steven Spivak, is spearheading the selection of the symposium’s technical agenda. Spivak said, “this theme reflects CIRI’s core competency. Methods, measurement and management are each critical elements required for effective cleaning, including disaster restoration. Those attending the 2019 symposium will gain a new and deeper understanding of these concepts that collectively define effective cleaning and restoration.”

“Equally important to CIRI is that science and research be practical and useful. In fact, we see the interrelationship of research and practice not only as essential but as a two-way street whereby better practices are examined and validated by research and research leads to still better practices.”

Australian-based Greg Whiteley will deliver the keynote presentation, “Anticipating Threats to Human Health.” CIRI has also issued a Call for Papers. Any individual or organization interested in presenting a technical or research paper at the 2019 CIRI Science Symposium is invited to contact CIRI executive director John Downey at 740-616-7248 or [email protected].

CIRI is a not-for-profit, educational, science and research organization in the worldwide professional cleaning, facilities, and building maintenance, jansan and disaster restoration industries.

Menkes invests in restoration of 320 Bay Street

Menkes Developments Ltd. (Menkes) alongside TD Greystone Asset Management (TD Greystone) has announced the acquisition of an interest in 320 Bay Street – a heritage building built in 1931 and designed by prominent Canadian architect Henry Sproatt.

Formerly known as the Canada Permanent Building, the 18-storey office building is situated on the southwest corner of Bay and Adelaide streets. According to a press release, the “renovation of 320 Bay Street will add much-needed office supply catered to the growing tech sector in the Financial District.

“This transaction will result in a major restoration of the building, improving the quality and service of the space, while preserving its history and architectural elements. The revitalization of the 270,000 square foot space will include significant electrical and mechanical upgrades.”

“We think this development will have a unique place in the market, as there is nothing like it in the core right now,” said Peter Menkes, President Commercial/Industrial.

“It will offer a cutting- edge work environment, redesigned to meet the growing demand for creative office space in Toronto, and will allow companies to occupy a historical, landmark property. Menkes does not currently have a heritage building in its office portfolio, so this is very exciting for us.”

The revitalization will take place over the next 12-18 months, with occupancy expected in 2020.

Calgary’s first Bus Rapid Transit corridor opens

Calgary’s first dedicated Bus Rapid Transit (BRT) corridor, called MAX Purple, is now open and serving the community. The design, led by Stantec, has transformed the corridor into a multimodal street with a strong focus on the needs of pedestrians and transit, while still accommodating high volumes of traffic.

MAX Purple, which has transformed over three kilometers of 17 Avenue SE, will provide Calgarians with a significant improvement in the speed and reliability of transit operations in the corridor, as well as a safer pedestrian experience. The connection of 17 Avenue SE to the city’s downtown has been enhanced by more than two kilometers of dedicated facility that provides a direct connection for pedestrians, cyclists and transit. The project was led by the City of Calgary with funding from the Alberta and federal governments.

“In designing the MAX Purple corridor, we considered not just the transit experience but the experience of all road users and the wider community,” says Dave Thatcher, senior principal at Stantec. “By taking a 360-degree view of the area and considering future development, we’ve provided a solution that will improve 17 Avenue SE immediately, and into the future.”

Calgary’s 17 Avenue SE has historically had a significant number of pedestrians and transit customers, though the facilities to accommodate them were in need of enhancement. Narrow sidewalks were widened, and a buffer was added between the pedestrian realm and the roadway. In Phase I of the route, the BRT travels along a median transitway through the International Avenue business district—home to more than 400 businesses. The full length of the MAX Purple Line is home to 60,000 Calgary residents.

“This is a huge boost for our businesses and for the people who live along the corridor,” says Alison Karim-McSwiney, executive director, International Ave BRZ. “We worked closely with Stantec at every step along the way, and the design we got is going to work well with the needs of our community.”

Phase 2 of MAX Purple is a dedicated facility that runs parallel to 17 Avenue and includes two kilometers of pathway that pass over the WID Canal, Deerfoot Trail, and the Bow River, providing several direct connections to the city’s extensive pathway system. Initial plans have also been developed to offer dedicated on-street bike accommodation on the parallel corridors.

“The MAX Purple Line is a key element of our plan to expand transit options to Calgary residents and to set the stage for future growth in the city,” says Howard Kai, City of Calgary. “Working with Stantec’s design team, we realized the design vision and accomplished the objectives we set out.”

While the project utilized traditional engagement sessions to consult the community, the Stantec team went a step further by also attending unannounced pop-up events at key community locations and drop-in storefronts with extended hours to accommodate the diverse schedules of community businesses and stakeholders.

MAX Purple is one of three new lines for the City of Calgary’s BRT. This project will serve as an example for other jurisdictions in Canada on how to cost-effectively enhance transit while improving the public realm.

Avrum Morrow leaves a notable legacy

Avrum Morrow, a member of the Order of Canada and co-founder of the Quebec-based cleaning products manufacturer, Avmor Ltd., has died at age 93. A generous philanthropist and supporter of the arts, Avi was highly respected within his own company, the sanitation supply industry and the wider community.

He has now been unmasked as Montreal’s anonymous Bike Man who, since the 1980s, donated hundreds of new bicycles, helmets and locks to the city’s youth. Generations of his own employees were more directly familiar with his largesse over Avmor’s 70-year history.

“We would not be here today if it were not for the scores of passionate people working for Avmor,” current president, Mattie Chinks, observed as the company marked its milestone anniversary last fall, with Avi and his wife Dora in attendance.

Avi Morrow helped to set that tone when he and his brother-in-law, Henry Chinks, launched the company in 1948. It remains a family business, which is now reconized for sustainable product innovation.

Avi’s patronage of the arts began in 1965 when he commissioned local artist RD Wilson to sketch the company headquarters in Old Montreal for Avmor’s Christmas card. In subsequent years, he commissioned and displayed more than 400 paintings, sculptures, drawings and photographs, then transformed the building into an art gallery after the company moved to a new location in Laval.

Along with his induction into the Order of Canada, Avi received professional acclaim including Sanitation Canada’s highest honour, the Sam Tughan Achievement Award, and ISSA’s Jack D. Ramaley Award for distinguished service to the industry.

Construction associations applaud steel tariff relief

The Vancouver Regional Construction Association (VRCA) joins the B.C. and Canadian Construction Associations in welcoming the federal government’s decision to provide tariff and safeguard relief on specific aluminum and steel products imported from the United States and overseas.

“This relief will bring some much-needed good news to the B.C. construction industry,” said Fiona Famulak, VRCA president. “Our industry has been weighed down with uncertainty over the last few months, caused first by the reciprocal countermeasures on American aluminum and steel, and more recently by the safeguards on non-U.S. steel.”

In response to its members’ concerns, in recent months, VRCA has partnered with a number of industry associations and business organizations to raise concern about the potential impact the tariffs and safeguard measures will have on the supply of various aluminum and steel products for the B.C. construction market.

Last month, VRCA sent a joint letter to Prime Minister Justin Trudeau and Finance Minister Bill Morneau asking the federal government to ensure:

that steel products in transit to Canada prior to the introduction of safeguards on October 25 be excluded from tariffs; and
a regional remission of 100,000 tonnes of rebar be allowed into British Columbia.

“We thank the federal government for hearing the appeals from Canada’s construction industry and other industries affected by the tariffs and safeguards,” Famulak said. “Exempting steel products already in transit prior to October 25 is a good first step towards bringing certainty back to our industry.”

“We also thank the provincial government for meeting with us and some of our members, hearing our concerns and raising those concerns to the attention of the federal government.”

VRCA is continuing to review the federal government’s announcement to better understand the implications of the numerous product remissions and the relief for specific companies announced in respect to Canada’s retaliatory tariffs and safeguards. Still, it is evident that further action is needed to ensure that B.C.’s construction schedule can proceed as planned.

“As welcome as these measures are, this relief is temporary, and the uncertainty will still affect competitiveness and business confidence in Canada,” said Mary Van Buren, president of the Canadian Construction Association. “The industry and investors need the stability of a permanent solution to the ongoing trade dispute to allow them to better plan for the future.”

Canada’s construction associations have long advocated for reciprocity and the establishment and maintenance of a free-flowing international system of trade, both regarding goods as well as services. They support international free trade agreements, including provisions respecting government procurement.

“This announcement demonstrates the important role that associations play in our industry, and the power of local, provincial, and national organizations collaborating together on key issues,” said Chris Atchison, British Columbia Construction Association president.

National Arts Centre earns Civic Trust Award

Diamond Schmitt Architects will be presented with a Civic Trust Award in 2019 for its work on Ottawa’s National Arts Centre rejuvenation. The project was selected for demonstrating excellence in architecture, sustainability and universal design.

The project transformed the performing arts centre while respecting its foundation, which was built in a concrete Brutalist design. The renovation created new interior public gathering space while extending the original geometry on the footprint of former terraces using a natural palette of wood, glass, steel and bronze.

“We are honoured to be recognized by the Civic Trust for a design that brings performing arts to the forefront and creates visible presence and identity to engage the public at all times of the day,” said Donald Schmitt, principal at Diamond Schmitt, in a press release.

The renewal improved acoustics, sightlines and accessibility in the main Southam Hall and enhances the street presence of the Fourth Stage, an incubator for theatre and music. New interior spaces provide enhanced views of nearby attractions, such as Parliament Hill, monuments and the Rideau Canal parkland.

Diamond Schmitt last won a Civic Trust Award in 2018 for Lazaridis Hall at Wilfred Laurier University, but has also been presented with this award for its work on Bridgepoint Active Healthcare (2016) and Daniels Spectrum (2015).

The Civic Trust Awards, the longest-running build environment awards program in Europe, is now in its 60^th year. This project is one of only a few award winners from North America. Winning projects were selected for demonstrating a positive social, cultural, environmental and economic benefit to the community. The Civic Trust will present awards and commendations on March 1, 2019 in Manchester, England.

Mental health start-up launches workplace training program

Calgary-based headversity, a digital mental health start-up, has launched a workplace training program that builds and measures mental health resiliency and helps companies develop a more resilient workplace.

PBA Land & Development was the first to partner with the start-up in a pilot program, which launched in Calgary on Dec. 18, 2018. Three new organizations will be joining the headversity pilot program in 2019 before a wider industry rollout.

headversity is led by Dr. Ryan Todd, a clinical psychiatrist at Foothills Hospital, and Dr. Karen MacNeill, a performance psychologist and the lead mental performance consultant for the Canadian Olympic Team. The evidence-based program addresses the full spectrum of mental health and performance in the workplace and incorporates both on-site and online solutions.

Dr. MacNeill, the company’s chief product officer, believes the comprehensive coverage of mental health, including performance, is a key distinction of the training program.

“Businesses are beginning to understand that the entire spectrum of performance is affected by one’s capacity for resilience,” she said, in a press release. “Training resilience will keep people healthy, yes, but it will also enable them to deliver stronger results even in the most difficult work environments. In the Workplace Wellness industry, there’s no one covering this full spectrum, so we’re excited to introduce headversity to the Canadian market.”

IFMA Foundation launches training framework

The International Facility Management Association Foundation (IFMA Foundation) has launched a new Facility Management Training and Development Framework.

In a press release, the foundation said it has released the framework in order to address the challenge of insufficient wholistic guidelines for training, particularly in the technical fields.

The framework will feature training and professional development options from a syndicate of associations, working together for the first time to provide seamless support of the entire built environment landscape. It will also advocate making FM a career of choice by charting specific career paths into FM and providing progressive training solutions in the field. As individual professionals progress through the framework, new training achievements will unlock new opportunities.

“FM professionals are increasingly likely to oversee a team of employees, contractors and outsourced labour to fill a matrix of skills necessary to manage a facility portfolio,” said the chair of IFMA’s global board of directors, Graham Tier. “You need specialists for any number of building systems, and one of the greatest challenges for FM professionals in management is ensuring that the people on their teams have the training and skills needed to fulfil their roles.”

Last year, IFMA and the Royal Institution of Chartered Surveyors (RICS) released a framework to help companies develop a more strategic approach to FM and this training and development framework enhances the process by cataloguing specific roles that fall under the umbrella of FM responsibility and mapping the skills necessary to effectively perform those roles.

“This is a tremendous opportunity for organizations across the built environment community to share and cross-promote their training resources,” Tier continued. “Practicing FM professionals can use the framework to bolster their own skills, train their teams or hire qualified team members. Aspiring FM professionals can identify a career path that gets them the training they need to take the next step. Working together, we’re all going to be better off.”

Alignvest purchases Ottawa student residence

Alignvest Student Housing Inc. announced it has enetered into a contract to purchase the purpose-built student accommodation (“PBSA”) property at 265 Laurier Avenue East in Ottawa, known as “The Annex”. The acquisition will be the third PBSA property purchase by Alignvest Student Housing Real Estate Investment Trust and will increase the REIT’s asset base to over $200 million.

“The Annex is an outstanding, brand-new, PBSA asset,” said Jonathan Turnbull, Managing Partner. “The Annex has a long-term agreement with the University of Ottawa, offering the accommodation to its students as part of their residence portfolio. The high-quality property, combined with the unique partnership with one of the preeminent universities in the country, makes The Annex one of Canada’s premier PBSA properties.”

The Annex is a nine-storey PBSA asset that opened in September 2018 as the newest addition to the University of Ottawa’s residence portfolio and is located approximately 300 metres from the University. Highly-amenitized with a lobby fireplace lounge, The Annex offers residents an on-site Anytime Fitness facility, a games room, quiet study spaces, high-speed Wi-Fi, a communal terrace with picnic tables, 24-hour on-site maintenance, controlled and secured access, interior bike parking and underground parking.

The building has 503 beds in 159 fully-furnished studios, 2-bedroom, 3-bedroom, 4-bedroom and 5-bedroom units, all of which have full kitchens with stainless steel appliances, individual locking private bedrooms with en-suite bathrooms and in-suite laundry and is 100% occupied for the 2018/19 school year. Additionally, the property is equipped with 16,000 square feet of commercial space with tenants that specifically target the student demographic.

The Annex is the second property that the REIT will own in Ottawa, which management believes to be one of the most attractive student housing markets in the country. The REIT’s first property in Ottawa, 111 Cooper Street, was acquired in November 2018, and is located 300 metres to the west of the University of Ottawa and less than one kilometre from The Annex.

Starlight and Homestead acquire two rental properties

Starlight Investments and Homestead Land Holdings announced they have jointly purchased two multi-residential apartment complexes located in Toronto and London, Ontario, for a total of $241 million. Combined the two properties comprise 962 units.

Parkvue Apartments, located in the east end of Toronto, consists of three tri-winged towers with 175, 173 and 225 units, plus a variety of amenities spread throughout the three buildings. The 7.3-acre site backs onto Knob Creek Park and presides over 777 feet of frontage on Danforth Rd.

“Starlight is pleased to continue its urban growth with the acquisition of three desirable high-rise towers in Toronto,” said Starlight Investments president and CEO Daniel Drimmer in the release. “These acquisitions create further synergies with our existing Toronto portfolio and will benefit from our scalable asset management program.”

According to JLL, who handled the transaction, the property “afforded the unique opportunity to acquire substantial residential rental scale and quality situated on a contiguous site located within a node that is both established and developing.”

Located at 1 and 9 Grosvenor St., and 291-295 George St., JLL calls Esplanade Apartments “the pinnacle of rental housing in London.” The property is just a few minutes from Western University and overlooks the banks of the Thames River in one of the city’s top neighbourhoods.

Consisting of four buildings ranging from three to 14 storeys on a 6.3-acre lot, Esplanade Apartments includes 392 rental units.

“The Esplanade is an institutional quality asset, adjacent to Gibbons Park, and located on the banks of the Thames River in London,” said Homestead CEO Alfred G. Hendry in the release. “We are very proud to add this spectacular property to our London portfolio.”

Firm Capital Property Trust acquires Dartmouth rental building

Firm Capital Property Trust announced it has acquired a multi-residential building consisting of 69 units located in Dartmouth, Nova Scotia. The acquisition price for the recent transaction is approximately $10.7 million, which translates to roughly $155,070 per unit.

The Dartmouth transaction is being financed through a combination of existing cash resources (including the Trust’s credit facility) and the assumption of an existing $7.0 million first mortgage with a Canadian Chartered Bank that matures on February 1, 2019. Firm Capital Property Trust is currently in the process of refinancing this mortgage. The Dartmouth Transaction is expected to be immediately accretive to AFFO.

As Property Managers, Firm Capital Properties Inc., based in Toronto, manages residential and commercial real estate. In addition to its commercial portfolio, it manages in excess of 2,500 residential units. The investment philosophy at Firm is to focus on deep value creation acquisitions, opportunistic investments and management practices that maximize value.

New Alberta condo rules to increase transparency

The Province of Alberta is launching new condo rules that will increase transparency and improve condominium governance in the province. The new regulations will cover day-to-day condo living and follows consultation with thousands of Albertans from July 2017 to July 2018, including industry groups and condo owners.

“About one out of every five Albertans lives in a condo and our government has their back,” said Brian Malkinson, Minister of Service Alberta, in a press release. “Last year, we unveiled stronger protections for condo buyers and now we’re introducing new rules to improve condo living. These new regulations will make life better for everyone in the industry, including condo owners, condo managers and condo boards.”

The new governance regulations were approved by cabinet in early December. They will:

Improve rules around meetings, including requiring more notice to attend general meetings and get topics on the agenda;
Revamp voting rules so owners can participate more effectively in meetings;
Provide easier access to condo documents by clarifying which documents must be provided to owners, when they need to be provided and what needs to be included;
Require a fairer process when condo corporations issue bylaw fines;
Establish more protections for condo owners’ investments;
Strengthen how reserve funds are managed; and
Establish new requirements for insurance and rental deposits.

Most of the new regulations will come into effect on July 1, 2019, with the remainder coming into effect on Jan. 1, 2020, to give condo corporations enough time to update their insurance coverage.

“We thank Service Alberta for the transparency in these changes and for including the voice of southern Alberta condo owners in their decisions,” said Ryan Coles, president, Canadian Condominium Institute (CCI), South Alberta Chapter. “The southern Alberta chapter of CCI supports and congratulates the government in taking these positive steps. We look forward to collaborating in the next phase of changes.”

The Condominium Property Amendment Act was passed in December 2014. The next step was to create over 50 supporting regulations, which are currently under development and being rolled out in stages. The first stage, which came into effect in 2018, focused on protecting condominium buyers and ensuring their investments are properly looked after. This second stage, which was announced on Dec. 14, focuses on condominium governance.

Photo (left to right): Ryan Coles, president, Canadian Condominium Institute (CCI), South Alberta Chapter; Brian Malkinson, Service Alberta Minister; Anand Sharma, Canadian Condominium Institute, North Alberta Chapter; Bob MacLeod, Condominium Owners Forum Society of Alberta; and Jennifer MacFarlane, on-site property manager for The Wedgewoods.

Morrison Hershfield and CCG Facilities merge

Morrison Hershfield Group and CCG Facilities Integration Incorporated have merged operations. Effective January 1, 2019, CCG operates as CCG, a Morrison Hershfield Company.

Morrison Hershfield and CCG Facilities Integration are industry leaders delivering mechanical, electrical and other professional services for mission critical environments. The merger combines well-known subject matter experts into one of North America’s most robust teams of design and commissioning professionals. Now unified, Morrison Hershfield and CCG have a strong North American footprint and a diverse team, adding to their collective ability to offer a wider range and depth of services.

“We tell our clients that the only thing more reliable than us, will be your data center,” says Anthony Karakatsanis, president and CEO of Morrison Hershfield. “This merger is a perfect technical and cultural match for our employees and clients, and I am very proud to have CCG join our firm.”

Morrison Hershfield has more than 1,000 employees and offices throughout Canada and the U.S. It is a multidisciplinary, employee-owned engineering and management firm that contributes to the social well-being and economic prosperity of the communities it serves.

CCG provides professional engineering, technology planning, commissioning, and management consulting services for mission-critical and technology-intensive facilities. Founded in 1992 and headquartered in Baltimore, Maryland, CCG is a privately held corporation that has become a recognized industry leader. Since its founding, the firm has built a reputation on fairness, honesty and integrity.

GTA condo sales fall 24 per cent in November

In November, the GTA new home market experienced more typical activity levels for both new home sales and new project openings after a relatively strong October, reports the Building Industry and Land Development Association (BILD).

There were 2,823 new homes sold in the GTA in November, according to Altus Group, BILD’s official source for new-home market intelligence. Condo apartment sales in low, medium and high-rise buildings, stacked townhouses and loft units accounted for 2,454 new home sales in November, a decline of 24 per cent compared to November 2017, but only six per cent below the 10-year average. Meanwhile there were 369 single-family home sales in detached, linked and semi-detached houses and townhouses, an increase of eight per cent year-over-year, but down 71 per cent from the 10-year average.

Remaining inventory rose on a monthly basis to 16,797 units – broken down, that is 11,254 condominium apartment units and 5,543 single-family units. Remaining inventory includes units in preconstruction projects, in projects currently under construction, and in completed projects.

“The condominium apartment market in the GTA is finishing off the year on a stronger note than it started,” said Patricia Arsenault, Altus Group’s executive vice president, data solutions, in a press release. “Both builders and buyers have re-engaged in stronger numbers in recent months, signalling that the downturn that followed record activity last year may be coming to an end.”

The benchmark price for both condominium apartments and single-family homes rose slightly in November 2018 on a monthly basis. The benchmark price for condominium apartments was $786,602, an 11.9 per cent jump year-over-year. The benchmark price for single-family homes was $1,150,823, a decline of 5.9 per cent on an annual basis.

Although the GTA’s housing market continued to show signs of recovery in November 2018, it will continue to operate below capacity until the issues that are restricting supply and demand are addressed through government policy, said David Wilkes, BILD president and CEO.

“The time for talk is done and our region needs action now to ensure we build the more than 50,000 new homes needed annually to support the GTA’s growing population,” added Wilkes. “Our industry is encouraged by the provincial government’s commitment to unlocking supply. We will continue to call on municipal governments to expedite approvals of new developments, and on the federal government to undo the negative effects of the outdated stress test on consumers’ ability to purchase homes.”

GTA home sales and prices post 2018 decline

According to the Toronto Real Estate Board (TREB), there were a total of 77,426 residential transactions through the TREB’s MLS System in 2018, representing a 16.1 per cent decline compared to the 92,263 home sales reported in 2017. The number of total new listings also dipped 12.7 per cent over the same period to 155, 823.

Across all home types, the overall average home price fell 4.3 per cent year-over-year to $787,300.

Home prices climbed slightly in the City of Toronto, but fell in the surrounding GTA regions. This is largely due to the fact that the condominium segment, which accounted for a large proportion of sales in the City of Toronto, performed better from a pricing perspective than the detached segment. The average price for condominium apartments in the GTA climbed 7.8 per cent on an annual basis.

“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options,” said Garry Bhaura, TREB president, in a press release. “With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”

“After spiking in 2017, new listings receded markedly in 2018. In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs. The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year,” added Jason Mercer, TREB’s director of market analysis and service channels. “Price growth was strongest for less-expensive home types, as many home buyers sought more affordable home ownership options.”

Partners REIT sells 11 Quebec retail properties

Partners Real Estate Investment Trust ( Partners REIT) announced it has found buyers for its 11 Quebec retail properties, the transaction is expected to close early in the second quarter of 2019.

According to a press release the sale of the properties from Partners REIT Quebec portfolio is expected to result in net cash proceeds to the REIT, after payment of related mortgages and transaction expenses, of approximately $65 million. In September 2018, the REIT retained BMO Capital Markets to broker the possible sale of some or all of its 11-property Quebec portfolio valued at that time for an estimated $194 million.

Following the sale of its properties in Quebec, the REIT will then own 11 retail properties in Ontario and one in Manitoba, aggregating approximately 623,000 square feet of leasable space. The board expects is considering a possible sale of either the REIT itself or the remaining 12 properties with the carrying value at approximately $120 million.

The REIT said it believes that the realizable value of these properties would currently be lower than $120 million as a result of negative market conditions in Ontario, including recent increases in the supply of retail properties on the market and reduced demand for these properties, which are generally resulting in higher capitalization rates and lower values particularly for retail properties in secondary markets such as those owned in Ontario by the REIT. Partners REIT will update the carrying value of its properties in the ordinary course when it releases its audited financial statements for the year ended December 31, 2018.

Affordable rental housing on national agenda

As 2019 begins, Canadians face a well-chronicled slate of challenges to owning or renting a home. Supply is tight, demand is robust and more stringent controls on obtaining credit have kept many would-be homeowners in rental dwellings. Despite this certain knowledge and some meaningful action steps taken by policy-makers to mitigate hurdles and spur new development, housing experts foresee a persistent lack of affordable housing into the future.

A recent report from Rentals.ca concludes the ongoing housing shortage will drive monthly rents even higher in 2019. Annual rental rates could increase by as much as 11 per cent in Toronto, 9 per cent in Ottawa and 7 per cent in Vancouver, the report predicts.

“Vacancy rates are getting even lower in several major Canadian cities, including Vancouver and Toronto,” observed Ben Myers, president of Bullpen Research & Consulting Inc. “Immigration is at a record high nationally and expected to increase. The change in the mortgage stress test has reduced credit availability and pushed more people to rent that were looking to buy in 2018. The increase in rental demand has not been offset by new supply.”

According to Bullpen’s data, the combined number of new rental housing units built across all of the Census Metropolitan Areas in Canada was just under 32,000 units from January to October 2018. Though this accounts for an increase of nearly 6,000 units over the same period last year, Meyers contends it won’t be enough to satisfy the additional demand.

Dr. J.David Hulchanski, professor of Housing and Community Development at the University of Toronto’s Factor-Inwentash Faculty of Social Work, concurs. “Rents will continue to increase especially in Toronto, Vancouver and Ottawa. There’s no reason why they would not,” he said.

Boosting supply: funding, incentives and the need for a streamlined process

The city of Toronto defines “affordable housing” as anywhere between 80 to 100 per cent of market value. “Deeply affordable housing” is defined at 40 per cent of the market rate. As Rentals.ca points out, this means that an affordable space in Toronto or Vancouver equates to around $2,000 per month for a one-bedroom apartment.

“The big issue to me in the Toronto rental market is not just price or affordability but inventory and supply,” said Dr. Richard Florida, professor and Director of Cities at the Martin Prosperity Institute at the University of Toronto’s Rotman School of Management. “We need to build a lot more rental housing at each and every price point.”

Ted Tsiakopoulos, Regional Economist (Ontario) at CMHC is optimistic that Canada’s 10-year National Housing Strategy, launched by the federal government in April of 2017, will help encourage new development and address the shortage of rental housing. That said, the goal of CMHC is a bold one with an ambitious 2030 deliverable. By that year, “CMHC is aiming to put every Canadian in not only an affordable home but also one that meets their housing needs,” he said.

To make it so, municipalities all across Canada have begun to unveil their latest initiatives aimed at boosting local affordable housing supplies. In Toronto, Mayor John Tory’s “Housing Now” plan is already underway with support from the federal and provincial governments. Eleven surplus city-owned land sites near transit stations are about to be transformed into much-needed affordable housing developments. The overarching goal, however, is to add 40,000 affordable units in the next 12 years and realize 3,300 or more affordable units per year, beginning in 2020.

Looking on the “Brightside”: More affordable housing coming for those in need in B.C.

A province deeply impacted by affordable housing shortages, British Columbia recently announced a $492 million commitment for the construction of 4,900 new mixed-income rental units across 42 communities. The non-profit organization, Brightside Community Homes Foundation, has been assigned $18.1 million to be used toward the creation of 181 rental units primarily for seniors and families. It’s perhaps a drop in the bucket in the grand scheme, but for the vulnerable residents of Brightside’s 26 buildings, grants like these are what make the difference between having a safe, secure place to call home, and not having a home at all.

“We are thrilled with this grant and what it means for our residents,” said Jan Robinson, executive director of Brightside. “We are hoping to maximize it and gain as much density on the property as possible. This will only help make things more affordable at the end of the day.”

Brightside, a housing provider in Vancouver since 1952, owns and manages 26 apartment buildings throughout the city, mostly three-storey wood-frame walkups for seniors, families and persons with disabilities—all individuals struggling to meet the demands of market housing. But, as with most properties built decades ago, many of the buildings are badly in need of repair—a costly endeavor when rental income is less than market and required accessibility upgrades are looming on the horizon.

“What makes us stand out from the other housing providers in the province is that we really try to focus on providing support and housing security,” Robinson said. “Many of our residents are older and losing their capacity to manage. Though we can’t provide staffing to go in and help them, we do connect them to services so that they are able to function independently for longer.”

YIMBYISM: “Yes in My Backyard”

Last fall, Brightside launched efforts to engage Vancouverites on the need for equitable housing developments for people of all income levels and to promote the idea of “YIMBYISM” as a solution to the city’s housing barriers. At an event attended by citizens, non-profit housing representative and real estate professionals, participants looked at a number of issues and responded to an in-depth housing survey.

Key takeaways from the survey:

75% said expediting the permit process is the most important issue/solution policy-makers should focus on in the next 12 months
64% said Vancouver’s current housing situation is a threat to diversity
46% said developers and non-profits should seek to build affordable housing projects that enhance or provide access to community spaces, with recommendations to provide housing that is “community-oriented”, “flexible”, “livable” and “bright” with direct access to outdoors
Most people (75%) had a positive perception of affordable housing
Concerns around “renovictions”; lack of affordable housing supply; high cost of rent; lack of developer interest in building affordable housing, and the need for more family-sized rentals emerged as top priorities

At the end of the day, Robinson said she is hopeful that “YIMBYISM” will prevail and believes that all levels of government are doing their part to effect change.

“Everybody is concerned about the affordable housing deficit and offering support,” she remarked. “However, I think we could use some more collaboration between the levels of government. Though there are many programs being offered, they need to be more accessible. CMHC’s Co-Investment Fund was a little too stringent and difficult for people to meet the qualifications, though I understand they are changing that and making it a little easier. Now, if the city could just step up a bit, cut the red tape and expedite that permitting process, that would be really helpful.”

“Affordable Housing Bonds”: A viable solution to the housing crisis?

Meanwhile, Cary Green, veteran housing developer and chairman of Greenwin Inc. has been touting the merits of a solution he believes could spark widespread housing development: government-funded development bonds. In December, Green spoke with TVO’s Steve Paikin about this approach and why he believes it’s the best possible direction.

“With between 3 and 4 million Canadians currently in need of affordable rental housing, the problem is endemic,” he told Paikin. “It cuts across the country and every group, the obvious one being the homeless. You’ve got people living in overcrowded homes and in substandard housing. Students…people in their first jobs…coming out of divorce, returning war veterans and new immigrants.”

In short, Canada needs more affordable housing, and these bonds, says Green, would provide a viable, fiscally responsible means to kick-start new development. Watch the complete interview here: https://tvo.org/video/programs/the-agenda-with-steve-paikin/a-private-sector-fix-for-affordable-housing

Erin Ruddy is the editor of Canadian Apartment Magazine

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